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Friday, 18 April 2025

Investing Updates : Worried about Your UCITS ETFs Denominated in USD? Perhaps the Funds Should be Denominated in Yen!


Source : 



Apple Intelligence : 


Currency Denomination Concerns: Investors express concerns about the impact of USD-denominated UCITS ETFs on their wealth, especially with rising gold prices and potential USD overvaluation.


Fund Recommendation: Dimensional Global Core Equity fund, available in SGD, GBP, USD, EUR, and JPY, offers a solution to currency concerns.


Performance Comparison: Investing in the JPY-denominated version of the fund since August 2017 would have yielded the highest returns compared to other currencies.


Fund Comparison: Global Core fund is more similar to MSCI World index than some European, Pacific Basin, Global Targeted Value funds.


MSCI World Performance: $1 million GBP invested in MSCI World denominated in GBP becomes $7.2 million in 21 years.


Currency Impact: Same underlying securities but different performance due to different currencies.

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